In recent years there has been an increase in the number of claims brought against executors by beneficiaries. Coupled with increased financial hardship because of the Coronavirus pandemic, executors must understand their duties and obligations to avoid claims.
In this article, we set out what is required of executors and how to ensure you carry out your obligations to the best of your ability while lockdown restrictions and social distancing measures are in effect.
Act promptly and with reasonable care
Social distancing restrictions and other priorities brought about by the pandemic make it more challenging for executors to carry out their duties promptly. However, you must endeavour to do so. As an executor, you are legally obliged to meet any deadlines, such as for payment of taxes. Many institutions are experiencing significant delays because of the pandemic including HMRC and the Courts. You should ensure you have adequate time to meet these deadlines.
Protect and maximise the value of the estate
One of the main duties of an executor is to protect the estate and maximise its worth for the beneficiaries. There are several things you can do to make sure you comply with this duty while Coronavirus restrictions are in place. You should ensure that any property forming part of the estate is secure. Remove valuables from any unoccupied buildings and notifying insurers that the property is empty.
Stay in regular contact with beneficiaries of the estate
In this confusing and stressful era, beneficiaries may be feeling anxious about the estate. The fear of financial difficulty and concerns about the economy, may mean that beneficiaries are worried about the value of any property or investments of the estate. By staying in regular contact with beneficiaries you will alleviate these fears and keep them informed about the performance of the estate assets.
You may wish to seek professional advice from an experienced financial advisor, to ensure that you are minimising any losses.
Keep accounts up to date
You must keep accounts and records up to date. This may be more challenging because of COVID-19; however, this does not protect you from criticism from beneficiaries if you fail to do so. You must also be responsive when beneficiaries request accounts or information.
How should I deal with any difficulty from beneficiaries?
Sadly, even when you endeavour to carry out your duties as executor, you may face criticism from beneficiaries. The best way to deal with any difficulty is direct action. Take steps as soon as possible to mitigate the situation or contact an experienced lawyer for advice.
What if you do not want to act as an executor?
You should discuss this with the person who appointed you. If they have died, you may still be able to renounce your role as an executor if you have not carried out any actions as an executor. You can do this by signing a deed of renunciation. If you want to do this, you should do it as soon as possible. This is because, save in very limited circumstances, you cannot step down from the role once you have started acting as executor. Renouncing your role as an executor will not necessarily mean you forfeit any legacy left to you in the will unless the legacy was contingent upon you accepting the role.
If you need advice on any of the points raised in this article call private client lawyers James McMullan, who will be happy to help.
Note: This is not legal advice; it provides information of general interest about current legal issues.